OUTLINEMicrosoft a monopoly?Microsoft Antitrust Case TrialMicrosoft Antitrust Case VerdictMicrosoft Antitrust Case AppealSWOT AnalysisConclusion
Microsoft a monopoly? In late 1990, Microsoft’s MS Office applications had 90% of market share Market share in Internet browser market of 44%, server operating system 36% Microsoft adopted pricing policy that prevents entry of new players and bundle policy Distributing Internet browser software, IE, free of cost along with its windows operating system
Microsoft Antitrust Case: Trial US Government claimed, Microsoft broken Antitrust policy October 1997, DOJ began Antitrust investigation May 1998, gave both parties 5months to fight suitAllegations Justification by MicrosoftViolating 1994 Consent Ruled out any kind ofdecree ViolationAbuse of monopoly power Not a illegal monopolyMade misleading statements Not possibly mean doom forand claims competitorsUnfair market strategy No one has guaranteed position
In June 2008, the US District court gave its ruling that Microsoft has violated the antitrust laws by abusing its power in operating system Jackson ruled that Microsoft was a monopoly; basing on 3 factors Microsoft’s share of the market for operating system was extremely large & stable A high entry barrier protected Microsoft’s dominant market share High entry barrier Verdict Company should split into 2 smaller companies Windows operating system Internet & other Business Further Microsoft should auction off the windows source code
Microsoft Antitrust Case: Appeal September 2000, Supreme court declined government’s bid Break up Microsoft not remedy: Supreme court Court upheld conclusion of Microsoft having monopoly & violated US antitrust laws In 2001, court ordered Microsoft and US government resolve remaining issues
SWOT Analysis STRENGTH WEAKNESSHuge Brand name and Customers lacked areputation in the market commercially viable alternativeHave a monopoly in the to windowsmarket Contradiction among own products OPPOTUNITIES THREATHave potential to attract Threat from competitorsmore customers companies like from Linux andShould establish a clean Appleimage May face strong illegal obligation
Conclusion Microsoft dominance because of Antitrust case, affected only for short run Microsoft’s OS monopoly continues today Microsoft has so many actions against it, can only cover the most important Law should not eradicate competition rather it should ensure proper competition
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